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Compensation and Six Sigma Black Belts
Author: Peter Peterka  | Posted: 10-09-2005 | Comments: 0 | Views: 142 | Rating: (60)  (?) 
One of the more ambiguous elements of a Six Sigma project is the
level and type of compensation the organization should give to
its Six Sigma leaders and team members. On the one hand, setting
compensation is not an integral part of any stage of a Six Sigma
project; on the other hand, compensation is an important
instrument to build loyalty and a sense of accomplishment that
is a crucial element to the organization's Six Sigma success.
While there are no hard and fast rules for compensation for Six
Sigma leaders and team members, there are some good ways to
think about how to productively provide compensation to your
people.
Black Belts are the key change agents for the Six Sigma process.
They have an important role and should be compensated
accordingly. If your organization is large enough to have people
dedicated full-time to leading Six Sigma projects, their base
pay should be in the top of your organization's range for their
level of management. If your organization is asking a manager to
also devote part of his or her time to leading a Six Sigma
project, you need to find some way to compensate them for their
extra efforts. In addition to base pay, you can find creative
ways for recognition for completed projects. Black Belts should
receive some special and public recognition for their efforts,
whether it is dinners, award ceremonies, plaques, etc. Whatever
fits best with your organizational culture. Such recognitions
should not be strictly limited to Black Belts either, as
acknowledging the achievements of all who participated in and
benefit from the Six Sigma project should receive some sort of
recognition to boost morale.
Monetary bonuses are another way to compensate people for
successful Six Sigma projects. Since Six Sigma projects are
about helping the organization make more money it makes sense to
share some of the cost savings from Six Sigma projects with the
Six Sigma team. Develop a structured, team-based process
improvement bonus system that will appropriately benefit each
worker in the organization. As measurable and lasting
improvements are made to processes, it is appropriate to share a
part of the financial gains with employees. Just be sure there
is a formal performance appraisal system that will identify what
is to be accomplished, what success looks and feels like, and
how an employee will be compensated, and that this is fully
communicated to everyone. Such an organizational goal-sharing
program will effectively support Six Sigma efforts. Being able
to link compensation to Six Sigma implementation is much easier
in a small company compared to a larger company.
Bonuses can also be paid to Black Belts, but with differences
due to their unique status. Instead of paying bonuses to Black
Belts as a share of actual process improvement, pay them bonuses
related to specific project goals. There is a danger in directly
tying their bonus with a share of the actual improvements as
they may be motivated to inflate or misconstrue actual gains.
That still leaves you with many concrete project milestones that
can be the basis for their compensation.
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Article Source: http://www.articlesbase.com/business-articles/compensation-and-six-sigma-black-belts-471.html
About the Author:Peter Peterka is President of Six Sigma http://www.6sigma.us and has over
15 years as Six Sigma Black Belt http://www.6si
gma.us/six-sigma-black-belt.php with a variety of
organizations.
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